$15 million available for Advanced Biofuels Payment Program

The USDA recently issued a notice of contract proposals for its Advanced Biofuel Payment Program, which provides payments to producers to support and expand production of advanced biofuels.

According to the NOCP, $15 million is available for fiscal year 2014. The intent of the NOCP is not to call for applications, rather, it is to advise those who have already applied for fiscal year 2014 funding how much funding is available, and how to qualify for those funds. Applications for participating in the program fiscal year 2014 were accepted from Oct. 1 through Oct. 31 of last year.

Payments to participating advanced biofuel producers under the notice will be made on actual eligible advanced biofuels produced from Oct. 1, 2013, through Sept. 30 of this year. Requests for payment for the first and second quarter of fiscal year 2014 must be submitted by 4:30 p.m. July 16. For second quarter payments the deadline is July 31, and for the third quarter, by Oct. 31.

According to program rules, the number of awards and amount will vary according to the number of qualifying participants under contract for payment.

The program defines advanced biofuels as being manufactured from renewable biomass crops such as cellulose, sugar and starch (excluding corn starch-based ethanol), hemicelluloses, lignin, waste materials, biogas, butanol, diesel-equivalent fuel, sugarcane, and nonfood crops such as poplar trees or switchgrass.

USDA is directing those desiring program assistance to contact a USDA Rural Development Energy Coordinator. Click here for a copy of the NOCP published in the Federal Register.